China Movie:2017YTD growth in line,China's longterm movie market growth intact

10M17like-for-like box office growth of 16% yoy, in line with our estimates

    Box office collection in October 2017was RMB5.13bn, increasing by 50% yoy(vs. RMB3.42bn in October 2016). As of 10M17, total box office increased by23% yoy to RMB47.8bn from RMB38.9bn in 10M16. If we exclude ticket handlingfees (c.6% of total box office), total box office in 10M17increased by 16% toRMB45bn, which is in line with our estimates for the same time last year. Webelieve this is mainly due to a strong Hollywood movie performance in 1H17andsurprising "Black horse" Chinese movies in 2H17, such as Wolf Warriors 2andNever Say Die. Longer term we are confident that the China box office will reachc.RMB81bn in 2020, which implies a CAGR of 16% from 2016(the base year).